Sovereign Wealth Fund, Worth $1.4 Trillion, in Norway Reported a 374 Billion Crown ($33.80 billion) Loss for the 3rd Quarter
Date : 24th October, 2023
Location: Oslo, Norway
THE SOIL – The world’s largest sovereign wealth fund, worth $1.4 trillion, in Norway reported a 374 billion crown ($33.80 billion) loss for the third quarter on Tuesday. The fund’s declines across all asset classes were attributed to rising interest rates and weakening economic conditions.
The fund’s performance during the July-September quarter resulted in a negative return of 2.1%, which exceeded the benchmark index’s performance by 0.17 percentage points.
![Norway Wealth funds](https://thesoilnews.com/wp-content/uploads/2023/10/28915010471_0ecbf0428a_c.jpg)
"One would point to the continued rising interest rates," Says Deputy CEO
The largest part of its portfolio, comprising 70.6% of its overall value for the quarter, equities, saw a 2.1% decline. Just over 25% of its holdings, or fixed income investments, saw a 2.2% loss, while real estate assets saw a 3.3% fall.
The wide-ranging character of the decrease “maybe indicates that there is a little bit of a fundamental macro factor driving this and… one would point to the continued rising interest rates,” Trond Grande, Deputy CEO, said.
![](https://thesoilnews.com/wp-content/uploads/2023/10/download.jpeg)
![Trond Gande](https://thesoilnews.com/wp-content/uploads/2023/10/Trond_Grande_pa_Sentralbanksjefens_arstale_2018_175109.jpeg)
Grande Said that He Didn't See Any Additional Risk
“Similarly, the fund had “some reservations,” as stated by Grande, because the expansion was centred around a small number of very well-known American IT companies.
When asked if he thought there was a greater chance of a market correction now than there was three months ago, Grande said that he didn’t see any additional risk
![](https://thesoilnews.com/wp-content/uploads/2023/10/32254612515_6045a09f8c_c.jpg)